Adobe Q1 Profits Down 21% From Last Year: Here's Why It Doesn't Matter
By L.D. Salmanson:Adobe (ADBE) reported first quarter net income of $185.2 million (37 cents a share), and non-GAAP net income of $1.045 billion (57 cents a share), just hitting analysts' estimates of 57 cents a share. "We delivered solid earnings in Q1, achieved revenue within our targeted range, and began to build excitement for our upcoming creative product release," said Mark Garrett, executive vice president and chief financial officer, Adobe. Although still recommended as a 'buy' by most analysts (51.9%), many still are reluctant about Adobe's new Software as a Service (SAAS) subscription model, and are waiting to see if it is as profitable as Adobe predicted. Analyst ratings with regard to Adobe's ten nearest competitors are more optimistic (73.9% average 'buy' ratings), but I believe Adobe will continue to grow in the coming 18 months, as it begins to capitalize on some of the emerging new areas in which it hasComplete Story »
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